Figure 16 Sept 2026From “What is price fairness? A reference and process problem”

The synthetic price-fairness record

A price change needs a named reference, entitlement, explanation, process, treatment, and later observation before fairness can be reviewed.

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Figure 1The synthetic price-fairness record

ID	Change context	Buyer reference	Seller explanation	Process state	Later observation
F-01	Supplier cost increase	Prior contract price	Cost pass-through and date disclosed	Consistent rule; notice sent	Acceptance to observe
F-02	Demand surge	Prior normal price	Scarcity claim without cost evidence	Exception not explained	Fairness concern to observe
F-03	Service reduction	Same price and prior service	No explanation for unchanged price	Process review required	Renewal behavior unknown
F-04	Segment-specific increase	Comparable account terms	Segment rule and value difference documented	Authority and exception named	Compare response by segment
F-05	Temporary discount expiry	Discounted invoice price	Expiry date stated at entry	Reference conflict recorded	Requote or churn to observe
F-06	Cost decrease	Current price and lower input cost	No pass-through rule declared	Hold for policy review	Buyer response unknown

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Source: Author's synthetic fairness record grounded in Kahneman, Knetsch and Thaler (1986), Urbany, Madden and Dickson (1989), and Bolton, Warlop and Alba (2003). References, explanations, process states, and responses are illustrative, not legal findings or observed customer data.

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Source and evidence

Each line names a claim related to this exhibit, its source, and how it was checked.

A KKT86-C1 "it is acceptable for a firm to raise prices or cut wages when profits are threatened and to maintain prices when costs diminish it is unfair to exploit shifts in demand by raising prices or cutting wages"kahneman-knetsch-thaler-1986-fairness
A KKT86-C2 Dual entitlement, defined: "transactors have an entitlement to the terms of the reference transaction and firms are entitled to their reference profit"kahneman-knetsch-thaler-1986-fairness
A KKT86-C7 The Okun lineage is explicit: "arthur okun 1981 went further in arguing that fairness also alters the outcomes in what he called customer markets"kahneman-knetsch-thaler-1986-fairness
A URB89-C1 The KKT prediction held: "we obtain empirical support for kkt s prediction that unjustified price increases are perceived as unfair while cost justification legitimates a price increase in consumers eyes"urbany-madden-dickson-1989-dual-entitlement
A URB89-C2 And the part usually dropped: "we also find however that fairness perceptions are not significantly related to behavioral intentions as the theory would suggest"urbany-madden-dickson-1989-dual-entitlement
A BWA03-C1 Three specific errors, verbatim: buyers "underestimate the effects of inflation overattribute price differences to profit and fail to take into account the full range of vendor costs"bolton-warlop-alba-2003-price-unfairness
B T04-OWN-C1 Price fairness is a judgment about an exchange relative to a reference, outcome, procedure, or comparison groupAuthor framework grounded in KKT86-C1, KKT86-C2, and URB89-C1
B T04-OWN-C2 Distributive fairness, procedural fairness, interactional treatment, and price realization are different objectsAuthor taxonomy
B T04-OWN-C4 The same price can be judged differently when the reference price, reason, process, or comparison changesAuthor framework grounded in KKT86-C7 and URB89-C2
B T04-OWN-C5 A lower price is not automatically fair, and a higher price is not automatically unfair without the relevant reference and processAuthor negative boundary

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

From the essay

Pricing & revenue architecture

What is price fairness? A reference and process problem

Price fairness depends on reference, cost or value explanation, process, and treatment. It is a perception object, not a legal verdict.

6 Sept 2026

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APA 7

Isoglu, S. (2026). The synthetic price-fairness record [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-price-fairness-fig02/

BibTeX

@misc{isoglu-2026-what-is-price-fairness-fig02,
  author = {Isoglu, Sinan},
  title = {{The synthetic price-fairness record}},
  year = {2026},
  howpublished = {Figure 1, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-price-fairness-fig02/},
  note = {From the essay {What is price fairness? A reference and process problem}}
}

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<figure>
  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-price-fairness-fig02/">
    <img src="https://isoglu.com/social/isoglu-2026-what-is-price-fairness-fig02.png" alt="Figure 1: The synthetic price-fairness record" width="3200" height="2400">
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  <figcaption>Figure 1: The synthetic price-fairness record. Source: Author&#39;s synthetic fairness record grounded in Kahneman, Knetsch and Thaler (1986), Urbany, Madden and Dickson (1989), and Bolton, Warlop and Alba (2003). References, explanations, process states, and responses are illustrative, not legal findings or observed customer data. <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-price-fairness-fig02/">View exhibit</a>.</figcaption>
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